Loop cuts Porch Group to Hold after Q4 miss, sees 2023 as transition year

As previously reported, Loop Capital analyst Mark Schappel downgraded Porch Group to Hold from Buy with a price target of $2, down from $4. The analyst cites the company’s "middling" Q4 results with a miss in earnings and revenue, though its adjusted EBITDA was "more or less in line". 2023 should become a transition year for Porch Group as the firm shifts its insurance business to a reciprocal insurance model, Loop Capital added, noting that changes like this almost never happen as smoothly and quickly as planned.